French legislation might chase iTMS out of the country

Proposed legislation in France would make DRM circumvention legal in most …

The French parliament is expected this week to consider legislation that would call for jail time and heavy fines for those who create and distribute software used for file-sharing downloading and fines for those who engage in file sharing. At the same time, it would allow consumers to circumvent DRM in order to move files from one device to another. That last provision could result in Apple abandoning the French version of the iTunes Music Store.

Since the launch of iTMS in 2003, Apple has been content with its vertically integrated, closed universe. And why not? Keeping the FairPlay DRM—used to protect tracks bought from iTMS—proprietary requires users to buy the iPod if they want to play them on a portable device. How much of a role the strategy has played in the success of both the iPod and iTMS is arguable, but the fact is that over 50 percent of digital music players sold in the US are iPods, and nearly 80 percent of online music sales come from iTMS.

In an attempt to foster competition in the digital music scene, the legislation under consideration would require Apple to provide a way for consumers to play iTMS tracks on players other than the iPod. French consumers would be able to convert their protected song purchased from iTMS into an MP3 or WMA for playback on their Samsung mp3 player. It is also possible that the law would cover DVDs, making DeCSS usage for personal backups legal.

Although the legislation does not appear to be aimed specifically at Apple, it's obvious that the iPod maker has the most to lose.

"It will force some proprietary systems to be opened up ... You have to be able to download content and play it on any device," Vanneste told Reuters in a telephone interview on Monday.

Apple's DRM may have been cracked once or twice, but the company has staunchly resisted all overtures to license FairPlay, allow iPods to play DRMed WMA files, and allow other music stores to offer downloads using FairPlay. If the law were to pass in its current form, Apple would likely abandon the French market rather than license FairPlay; once a tool for stripping the DRM or converting the files becomes available in France, it will spread around the world faster than you can say "Internet."

Downloading music and associated file-sharing activities have been a hot topic of discussion in France. The legislation currently under consideration would revamp a proposal approved late last year by a small number of deputies in the lower house of the French parliament. That would have relaxed restrictions on P2P file sharing while imposing an Internet access surcharge to compensate copyright owners.

The legislation in its current form is a far cry from that originally proposed, and is much more restrictive. People making files available for illegal download will now face fines of up to €150 while those doing the downloading will be hit up for €38. Those creating and distributing the software could see up to three years in prison and €300,000 fines.

By enacting the legislation, France would come into compliance with European Union directives on copyright law while adding on a few nuggets of its own (like the iTMS transmutation). Overall, it appears to play into the hands of the content creation industry while offering a bit less than meets the eyes for consumers. Many will welcome being able to play their media on the device of their choosing, but I can't get too excited about being allowed to degrade my music files by moving them from one lossy format to another. And will French consumers be better off if the market leader decides to take its ball and go home?